Klarna launches peer-to-peer payments in the UK as an update

Klarna has added instant peer-to-peer payments for users in 13 countries, including the UK. The Financial Conduct Authority is consulting on bringing buy now, pay later into its remit, with rules expected to take effect in July 2026.

Klarna has introduced instant peer-to-peer payments for users in 13 countries, including the UK. Users can send money to other Klarna customers by choosing a recipient via phone number, email, QR code, or a saved contact. Klarna runs fraud and eligibility checks before completing transfers, and transfers are currently limited to other Klarna users. The change follows recent product additions such as Klarna Balance and the Klarna Card. Key facts: - Instant peer-to-peer payments are now available in 13 countries, including the UK. - Users send money to other Klarna customers using a phone number, email, QR code, or saved contact. - Klarna performs fraud and eligibility checks before payments proceed. - Klarna Balance (a digital wallet) and the Klarna Card are existing features that let users store money, receive cashback, manage refunds, and pay for purchases. - If customers miss buy now, pay later payments, Klarna may charge late fees and can share information with credit referencing agencies, which can affect credit records. - The Financial Conduct Authority has launched a consultation on buy now, pay later products; the article reports the FCA expects BNPL to enter its remit in July 2026 and that firms would have six months from that date to apply for full authorisation. Summary: The new peer-to-peer feature expands Klarna's payments offerings and lets users transfer small amounts within its network. Regulatory change is under way, with the FCA consultation signalling that buy now, pay later will come under formal regulation in July 2026 and firms will have a six-month window to seek authorisation.